Interswitch secures $110 million investment from LeapFrog and Tana Africa Capital

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African payments company Interswitch has received a $110 million joint investment from LeapFrog Investments and Tana Africa Capital to scale its digital payment services across the continent.This was stated in a statement by two private equity firms on Wednesday..

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Interswitch has not confirmed the amount it has received from the firms. “The exact terms of the deal are not was revealed. We I can’t comment on that yet,” a spokesperson for the company told TechCrunch when asked about the investment and the new Interswitch valuation..

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However, Interswitch Group CEO Mitchell Elegbe said in a statement that the company is “delighted to welcome LeapFrog and Tana on board as we continue our work to advance the future of the African payments landscape.”

The news comes nearly three years after Interswitch’s last announced funding round, when Visa paid $200 million for a 20% stake in the company. With $1 billion (latest known valuation), Interswitch is one of Africa’s largest electronic payments and infrastructure companies. Fintech provides most of the rails for Nigeria’s online banking system and is well known for its point-of-sale terminals, online consumer payment platforms, Quickteller and Verve, Africa’s largest domestic debit card scheme with over 35 million active cards. maps since launch.

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In 2016, Interswitch ridiculed the idea of ​​going public. In an interview the same year, CEO Elegbe told TechCrunch that the company would be dual listing on the London and Nigerian stock exchanges..

Subsequent reports of a 20-year fintech listing on a major exchange also appeared in 2019 and 2020; but this plan seems to was shoveled in the back seat after investment from Visa.

Interswitch’s exit is not only a victory for the African tech ecosystem, but also a victory for the company, its executives and especially its largest shareholder, UK-based Ignite Holdco Limited (consisting of Helios Investment Partners and TA Associates). . But since this was not foreseen, the holding company found an immediate alternative. In addition to injecting new capital into the Interswitch business, part of the new investment involves the acquisition of shares by LeapFrog and Tana from existing shareholders, including Ignite Holdco Limited.

Along with existing investors, LeapFrog and Tana plan to work with management to continue advancing Interswitch’s pan-African strategy, which includes attracting new customers and creating new products to support the financial inclusion strategy.

“As a pioneer in the African payments ecosystem, Interswitch has been changing the cash economy for two decades by introducing digital payments and promoting fair financial inclusion in Nigeria. This investment by LeapFrog confirms Interswitch’s outstanding talent and how well placed it is to take advantage of significant opportunities in Africa’s emerging digital payments landscape,” said Karima Ola, partner at LeapFrog Investments, Head of Africa Financial Services, in a statement.


Credit: techcrunch.com /

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